Forestry starts the programme next year, with petrol prices to be hit from 2009, electricity generation in 2010. Farming joins the scheme in 2013.

(Energy Minister) "Mr Parker said there would be a small hit to economic growth, but action had to be taken," NZPA continued.

NZPA noted New Zealand's growing "Kyoto Liability"- remember, NZ was supposed to benefit from global carbon trading by several hundred million or so, but will be over a billion or so in deficit annually.

And Clark saying climate change was one of the world's most important issues facing New Zealand.

Monckton said the Government was at last making real "the dream of every tyrant – to tax the very air that we breathe"."From now on, every time you exhale you will be paying through the nose for it, literally as well as metaphorically," he said.

The planned cap-and-trade policy was "silly" and exploited "needless public alarm about global warming"."None of these suggestions is as silly as the carbon trading which the Government proposes," he said.